Oil prices were little changed Tuesday, as the market weighed conflicting signals about whether the U.S. and Iran would strike a deal to boost traffic in the Strait of Hormuz.
U.S. West Texas Intermediate futures were 19 cents higher at $82.32 per barrel at 8:01 a.m. ET. Brent crude, the international benchmark, was up 2 cents at $87.74 per barrel.
Crude prices pulled back from session highs after Pakistan’s Defense Minister said signals indicate that the U.S. and Iran “are close to some sort of arrangement,” according to Bloomberg News.
U.S. oil had risen as much as 3% earlier in the day after President Donald Trump demanded that Iran pay reparations to the U.S., dimming prospects for an agreement.
Trump on Monday extended its suspension of a shipping law restricting the transport of goods between American ports to U.S. vessels, while narrowing the waiver only to vessels hauling certain energy resources.
The move came after data showing U.S. government crude oil stockpiles have fallen to their lowest level in more than four decades
Oil prices moved sharply higher on Tuesday
Traders are meanwhile assessing the latest contradictory statements coming from Washington and Tehran, with President Donald Trump stating the U.S. has “100%” control of the Strait of Hormuz.
A fresh sticking point has emerged over the payment of reparations, which are now being demanded by both sides over claimed damages.
“The oil market remains very headline-driven, which leaves prices whipsawing. The latest bout of optimism is quickly fading,” ING strategists wrote in a Tuesday note.
“Current rhetoric suggests any potential deal is still some way off, meaning risks remain skewed to the upside for oil prices.”
— CNBC’s Kevin Breuninger and Spencer Kimball contributed to this report.
